Semtech (SMTC) Downgraded to “Sell” at Zacks Investment Research

Semtech (NASDAQ:SMTC) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued on Tuesday.

According to Zacks, “Semtech is currently riding on differentiated growth drivers and diversification strategy. Key growth drivers for Semtech are product differentiation, operational flexibility and a specific focus on fast-growing segments and regions. The company’s fiscal third quarter 2018 earnings improved both sequentially and year over year. However, concerns about the company’s exposure to seasonality, a competitive market and foreign exchange risk persist. On a year-to-date basis, the stock has underperformed the industry it belongs to.”

Other equities research analysts have also issued reports about the stock. B. Riley reiterated a “buy” rating and issued a $48.00 target price on shares of Semtech in a report on Sunday, September 3rd. Drexel Hamilton restated a “buy” rating and set a $45.00 price objective on shares of Semtech in a report on Thursday, August 31st. Oppenheimer restated a “buy” rating and set a $42.00 price objective on shares of Semtech in a report on Sunday, August 27th. BidaskClub lowered shares of Semtech from a “strong-buy” rating to a “buy” rating in a report on Friday, August 18th. Finally, BWS Financial set a $49.00 price objective on shares of Semtech and gave the stock a “buy” rating in a report on Thursday, November 30th. One analyst has rated the stock with a sell rating, one has assigned a hold rating and eight have given a buy rating to the company’s stock. The stock currently has an average rating of “Buy” and an average target price of $43.29.

Semtech (NASDAQ:SMTC) traded down $0.25 on Tuesday, reaching $33.80. 891,400 shares of the company’s stock traded hands, compared to its average volume of 481,990. The company has a current ratio of 3.80, a quick ratio of 3.20 and a debt-to-equity ratio of 0.32. The firm has a market capitalization of $2,259.50, a price-to-earnings ratio of 29.35, a PEG ratio of 5.54 and a beta of 1.41. Semtech has a 12 month low of $30.00 and a 12 month high of $41.95.

Semtech (NASDAQ:SMTC) last posted its earnings results on Wednesday, November 29th. The semiconductor company reported $0.54 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of $0.50 by $0.04. The company had revenue of $156.60 million for the quarter, compared to analyst estimates of $155.69 million. Semtech had a net margin of 7.79% and a return on equity of 12.13%. The business’s revenue for the quarter was up 11.1% compared to the same quarter last year. During the same period last year, the business posted $0.37 earnings per share. research analysts forecast that Semtech will post 1.23 earnings per share for the current fiscal year.

In other Semtech news, VP Mark C. Costello sold 897 shares of Semtech stock in a transaction on Wednesday, September 6th. The shares were sold at an average price of $36.27, for a total value of $32,534.19. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, insider Mohan Maheswaran sold 2,500 shares of Semtech stock in a transaction on Wednesday, November 15th. The shares were sold at an average price of $37.76, for a total transaction of $94,400.00. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 53,620 shares of company stock worth $2,092,651. 2.20% of the stock is currently owned by company insiders.

A number of hedge funds have recently modified their holdings of the business. Sterling Capital Management LLC increased its stake in Semtech by 85.9% in the 3rd quarter. Sterling Capital Management LLC now owns 75,770 shares of the semiconductor company’s stock valued at $2,845,000 after buying an additional 35,005 shares during the last quarter. California Public Employees Retirement System increased its stake in Semtech by 6.4% in the 3rd quarter. California Public Employees Retirement System now owns 147,572 shares of the semiconductor company’s stock valued at $5,541,000 after buying an additional 8,872 shares during the last quarter. Cubist Systematic Strategies LLC increased its stake in Semtech by 153.7% in the 3rd quarter. Cubist Systematic Strategies LLC now owns 27,651 shares of the semiconductor company’s stock valued at $1,038,000 after buying an additional 16,750 shares during the last quarter. Highbridge Capital Management LLC increased its stake in Semtech by 732.5% in the 3rd quarter. Highbridge Capital Management LLC now owns 54,397 shares of the semiconductor company’s stock valued at $2,043,000 after buying an additional 62,997 shares during the last quarter. Finally, PEAK6 Investments L.P. acquired a new stake in Semtech in the 3rd quarter valued at $375,000. Hedge funds and other institutional investors own 94.23% of the company’s stock.

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About Semtech

Semtech Corporation is a supplier of analog and mixed-signal semiconductor products. The Company designs, develops and markets a range of products for commercial applications, which are sold into the enterprise computing, communications, consumer and industrial end-markets. Its product lines include Signal Integrity, Protection, Wireless and Sensing, and Power and High-Reliability.

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